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The Effect of Interdiction on Coca Cultivation in Colombia

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  • Juan Pablo Cote

Abstract

This paper studies the effect of interdiction on coca cultivation in Colombia. Though directed against intermediate and final stages of cocaine production, this strategy could also have an impact on coca cultivation by affecting monopsonistic activities of ilegal groups. My results suggest that different types of interdiction operations have a negative effect on coca crops. In particular, I find that the presence of dismantling of laboratories causes a reduction of 0.003 to 0.006 hectares per squared kilometer in coca cultivation, coca base seizures cause a reduction of 0.003 to 0.008 hectares per squared km, coca leaves seizures cause a reduction of 0.006 to 0.019 hectares per squared km and cocaine seizures cause a reduction of 0.009 to 0.061 hectares per squared km. I interpret these results as evidence that interdiction is an effective anti-narcotic strategy; however,a cost-benefit analysis is needed to evaluate its convenience over other strategies, like aerial spraying campaigns.

Suggested Citation

  • Juan Pablo Cote, 2019. "The Effect of Interdiction on Coca Cultivation in Colombia," Documentos CEDE 17316, Universidad de los Andes, Facultad de Economía, CEDE.
  • Handle: RePEc:col:000089:017316
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    File URL: https://repositorio.uniandes.edu.co/bitstream/handle/1992/41082/dcede2019-18.pdf
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    References listed on IDEAS

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    1. Daniel Mejía & Pascual Restrepo & Sandra V. Rozo, 2017. "On the Effects of Enforcement on Illegal Markets: Evidence from a Quasi-Experiment in Colombia," The World Bank Economic Review, World Bank, vol. 31(2), pages 570-594.
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    4. Reyes, Luis Carlos, 2014. "Estimating the Causal Effect of Forced Eradication on Coca Cultivation in Colombian Municipalities," World Development, Elsevier, vol. 61(C), pages 70-84.
    5. Francesco Bogliacino & Alberto J. Naranjo, 2012. "Coca Leaves Production and Eradication: A General Equilibrium Analysis," Economics Bulletin, AccessEcon, vol. 32(1), pages 382-397.
    6. Alberto Abadie & Guido W. Imbens, 2008. "On the Failure of the Bootstrap for Matching Estimators," Econometrica, Econometric Society, vol. 76(6), pages 1537-1557, November.
    7. Camacho, Adriana & Mejía, Daniel, 2017. "The health consequences of aerial spraying illicit crops: The case of Colombia," Journal of Health Economics, Elsevier, vol. 54(C), pages 147-160.
    8. Moreno-Sanchez, Rocio & Kraybill, David S. & Thompson, Stanley R., 2003. "An Econometric Analysis of Coca Eradication Policy in Colombia," World Development, Elsevier, vol. 31(2), pages 375-383, February.
    9. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Cristian Frasser & Lucie Lebeau, 2023. "Complementary Currencies and Liquidity: The Case of Coca-Base Money," Working Papers 2307, Federal Reserve Bank of Dallas.
    2. Hernando Zuleta González, 2017. "Coca, cocaína y narcotráfico," Documentos CEDE 15634, Universidad de los Andes, Facultad de Economía, CEDE.

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    More about this item

    Keywords

    Interdiction; coca cultivation; causal effect;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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